Successful £155m forward sale with L&G and Clanmil

Watkin Jones plc

05 June 2023

 

5 June 2023

Watkin Jones plc

('Watkin Jones' or the 'Group')

Forward sale of Loft Lines, Titanic Quarter to L&G and Clanmil

Watkin Jones is pleased to announce the forward sale of Loft Lines, at Titanic Quarter in Belfast, to L&G and Clanmil Housing Association ('Clanmil').  The development funding comprises 627 Built to Rent ('BTR') units and 81 social rent affordable homes.

This project will be the first BTR scheme in Belfast, part of one of the largest waterfront regeneration sites in Europe.  Loft Lines will be a brand-new urban riverside community built on Queen's Island, in the centre of Titanic Quarter, Belfast.  The development will help to further catalyse the regeneration of Queens Island, alongside helping to transform Belfast city centre living, bringing attractive residential homes to the area for the first time and a significant boost to the local economy.

The total consideration payable to the Group over the course of the development will be approximately £155 million.  The scheme is scheduled for delivery in summer 2026 and is expected to deliver a margin in line with current target returns.  Construction work on the development will not start meaningfully until FY24 and therefore the profit contribution to FY23 will be restricted to a small profit on the land transaction, as expected.

Richard Simpson, Chief Executive Officer of Watkin Jones, said: "We are delighted to have secured institutional investment from both L&G and Clanmil Housing Association for this landmark scheme in Belfast's iconic Titanic Quarter.  This is further evidence of the attractive investment and operational fundamentals of both BTR as a sector and Belfast as a city and a good sign of capital markets re-opening."

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This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR")

For further information:

Watkin Jones plc
Richard Simpson, Chief Executive Officer	Tel: [phone]
Sarah Sergeant, Chief Financial Officer	www.watkinjonesplc.com
Peel Hunt LLP (Nominated Adviser & Joint Corporate Broker)		Tel: [phone]
Mike Bell / Ed Allsopp		www.peelhunt.com
Jefferies Hoare Govett (Joint Corporate Broker)		Tel: [phone]
James Umbers/David Sheehan / Paul Bundred		www.jefferies.com

Media enquiries:

Buchanan
Henry Harrison-Topham / Jamie Hooper	Tel: [phone]
[e-mail]	www.buchanan.uk.com

Notes to Editors

Watkin Jones is the UK's leading developer and manager of residential for rent, with a focus on the build to rent, student accommodation and affordable housing sectors. The Group has strong relationships with institutional investors, and a reputation for successful, on-time-delivery of high quality developments.  Since 1999, Watkin Jones has delivered 48,000 student beds across 143 sites, making it a key player and leader in the UK purpose-built student accommodation market, and is increasingly expanding its operations into the build to rent sector.  In addition, Fresh, the Group's specialist accommodation management business, manages over 22,000 student beds and build to rent apartments on behalf of its institutional clients.  Watkin Jones has also been responsible for over 80 residential developments, ranging from starter homes to executive housing and apartments.

The Group's competitive advantage lies in its experienced management team and capital-light business model, which enables it to offer an end-to-end solution for investors, delivered entirely in-house with minimal reliance on third parties, across the entire life cycle of an asset.

Watkin Jones was admitted to trading on AIM in March 2016 with the ticker WJG.L.  For additional information please visit www.watkinjonesplc.com

 

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